Lumber futures prices edged higher to $560 as hedge funds add positions, betting on extended demand into summer. The spread between spot and futures reflects anticipated tightening in supply. Perhaps no material illustrates the tariff trap better than lumber. Canada supplies roughly 85 percent of all US softwood lumber imports and represents nearly a quarter of America’s total lumber supply. Last month, the Trump administration more than doubled its 14.5 percent tariff on Canadian lumber to a rate of 35 percent . Before the pandemic, lumber rarely traded above $450. In July 2020, futures were at $499 per thousand board feet, the WSJ reported at the time. Lumber futures prices are climbing toward $561 on renewed optimism over infrastructure spending allocations. Industrial lumber consumption adds a secondary demand layer to typical residential cycles.